PIAF welcomes new companies ordinance

LAHORE: The Pakistan Industrial & Traders Associations Front (PIAF) on Wednesday hailed the government for taking action in controlling corruption by regulating offshore investments in view of promoting transparency and good governance.

PIAF Chairman Irfan Iqbal Sheikh, Senior Vice Chairman Tanveer Ahmed Sufi and Vice Chairman Khawaja Shahzeb Akram told media here that government's new Companies Ordinance 2016 would ensure transparency in corporate governance, curbing corruption and helping the government address challenges related to offshore investments.

They said the government took a number of measures to counter money laundering, adding that Companies Ordinance 2016 empowered the Securities and Exchange Commission of Pakistan to conduct a joint investigation against fraud, money laundering and terrorist financing. The Benami Law aimed to curb the use of Benami transactions for criminal proceeds and black money, they maintained.

Irfan Iqbal said that the ordinance emphasized maximum disclosures by Pakistanis to the local regulatory authorities in respect of investment in foreign companies. Under the new ordinance, the SECP would maintain Companies Global Register of Beneficial Ownership, which would have complete record of the beneficial ownership of substantial shareholders and officers in local and foreign companies doing business in the country.

Moreover, he asserted, it would be binding on the foreign company operating in Pakistan to provide complete information of its directors, officers and beneficial owners.

However, he urged the government to re-evaluate property rates and related tax matters in consultation with the industry stakeholders. Pakistan has become a signatory to the Organisation for Economic Cooperation and Development's multilateral convention on mutual administrative assistance in tax matters, he mentioned.

The PIAF office-bearers urged the government to ensure effective and expeditious implementation of these laws and measures to achieve the desired outcomes.